Ministry of Trade Industry Regional Integration and Employment (MOTIE) Responds….
By: Victor Ofuonye
Last week, our Part 1 on the subject topic dwelt on the importance of Regional Importance in helping spur economic growth. Our reporter sat down with the Permanent Secretary at MOTIE, Mr. Lamin Dampha to dilate on what the government is doing to ensure that Gambian businesses particularly, Manufacturers are well positioned to benefit from regional trade.
Below are excerpts from the interview
Question: Are there any government policies to encourage regional integration, particularly where manufacturing is concerned? If so can you tell me more about some of these policies?
Answer: The Gambia has implemented several policies and strategies to foster regional integration and promote manufacturing within the framework of regional and continental initiatives such as the Economic Community of West African States (ECOWAS) and the African Continental Free Trade Area (AfCFTA). Some examples of the policies include but are not limited to the following: National Regional Integration Policy (2021- 2030), National Trade Policy (2018-2022), RF-NDP (2023-2027), National AfCFTA Implementation Strategy (2021-2030)
Question: What legislative frameworks are there to encourage manufacturing vis a vis regional integration and trade within the sub-region?
Answer: The GIEPA ACT 2015 is the legislative framework that encourages manufacturing, trade, and regional integration.
Question: A critical area that is vital for international trade is infrastructure development, can you elucidate on the advances of government in this area?
Answer: The Government is embarking on massive infrastructural engagements and reforms as seen in the Bertil Harding Highway (OIC Roads), Airport Refurbishment, etc
Question: You must agree with me that global trade today, requires an effective telecommunication backbone, where are we as a country as regards the robustness of our ICT sector to the needs of international trade?
Answer: The creation of the Ministry of Communication and Digital Economy is a step in the right direction by the government to ensure that The Gambia participates in the Global Digital Economy and the 4th Industrial Revolution.
Question: Can you outline some trade agreements and economic cooperation initiatives of the government that will help take Gambian manufacturing to the next level?
Answer: The AfCFTA and ECOWAS Industrial Strategy.
Question: How can Gambian businesses leverage the numerous bilateral and multilateral agreements that the government has in place?
Answer: By staying informed about relevant agreements and developing strategies to maximize their benefits, businesses can effectively leverage bilateral trade agreements to grow and succeed in the global marketplace. Most of these agreements offer great advantages to businesses such as access to new and bigger markets, investment opportunities, reduced tariffs, strategic partnerships, and simplified regulations.
Question: What efforts are being made to promote intra-regional trade?
Answer: The Government of The Gambia has implemented several efforts to promote intra-regional trade, recognizing its significance for economic growth, diversification, and regional integration. These efforts include the implementation of the AfCFTA Commitment, Trade Policy Reforms, Signing of Bilateral Agreements within the sub-region, revival and strengthening of the Trade Facilitation Committee, etc.
There are several incentives for Gambian Businesses such as:
The AfCFTA aims to create a single market for goods and services across Africa by eliminating tariffs on most goods and facilitating the movement of capital and people. This agreement can help Gambian businesses access new markets and increase their Competitiveness.
Export Processing Zone License (EPZL): Businesses operating in export processing zones can benefit from various incentives, such as exemptions from corporate or turnover tax, withholding tax on dividends, value-added tax on imported direct inputs, and import duty on imported direct inputs.
Special Investment Certificate (SIC): The SIC provides fiscal incentives, including exemption from income tax for five years for priority sectors and eight years for priority areas, annual allowance for depreciation, and exemption from import duty and VAT on capital goods.
Technical Assistance and Advisory Services: The Gambia Investment and Export Promotion Agency (GIEPA) offers technical assistance in export readiness assessment, advisory services on participating in international trade shows, and facilitating visits by potential investors.
Export Promotion Incentives: GIEPA provides incentives for export promotion, such as assistance with export documentation, finding markets and customers, and quality control. These incentives are designed to support Gambian businesses in expanding their operations and participating in intra-regional trade.
GIEPA has stated in numerous forums/platforms that they can provide the following business support services for the government.
Business Development Services (BDS): These include coaching, business advisory services,
access to finance coaching, and market linkages. GIEPA provides professional help and support to aspiring entrepreneurs and existing businesses to improve their performance and competitiveness.
Training and Capacity Building: GIEPA offers face-to-face training programs, capacity building, and coaching at subsidized costs. They also provide free access to online business reading materials for self-tutorials.
Market Research and Facilitation: GIEPA conducts market research to identify niche markets and helps businesses increase their marketing productivity. They also facilitate linkages between domestic and foreign enterprises for joint ventures and partnerships.
Formalization and Access to Markets: Services include business formalization (registration, TIN, corporate account development) and access to market initiatives. GIEPA helps businesses connect with consumers and provides additional training on export readiness for those with export potential.
Question: Are there any incentives for Gambian businesses wishing to get involved in Intra Regional Trade?
Answer: Yes, we have a bilateral agreement with Senegal that incorporates cultural exchanges and business-to-business connectivity. Every year the respective Investment and export promotion agencies of The Gambia and Senegal alternate organizing an Economic, Trade, and Investment Forum where senior officials and the major investors of both nations converge to interact and the event always involves cultural exchanges and a gala dinner on the last day of the Forum. These events have been institutionalized and mainstreamed into the work plan of both Investment promotion institutions.
